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Restructuring and Reorganization Charges
 6 Months Ended
Jun. 30, 2016
Restructuring And Related Activities [Abstract]  
Restructuring and Reorganization Charges

5.  RESTRUCTURING AND REORGANIZATION CHARGES

During the second quarters of 2016 and 2015, we recorded restructuring and reorganization charges of $5.3 million and $0.4 million, respectively, and for the six months ended June 30, 2016 and 2015, we recorded restructuring and reorganization charges of ($0.4) million and $1.0 million.  

Our restructuring activities during the six months ended June 30, 2016 are primarily made up of the following:

 

·

We reduced our workforce by approximately 50 employees, primarily in North America, as a result of organizational changes and the realignment of our workforce.  As a result, we incurred restructuring charges of $6.0 million during the six months ended June 30, 2016.

 

·

In September 2015 we entered into an agreement (the “Agreement”) with certain former management personnel for the sale of our cyber-security business marketed under the Invotas brand.  In February 2016, this business was acquired by a third-party.  Based on the terms of the Agreement, we received additional consideration contingent upon a liquidation event, as defined in the Agreement.  This resulted in an additional gain on the sale of $6.6 million in the first quarter of 2016, which reduced restructuring and reorganization charges.

The activity in the business restructuring and reorganization reserves during the six months ended June 30, 2016 was as follows:  

 

 

 

Termination

 

 

Facilities

 

 

Business

 

 

 

 

 

 

 

 

 

 

 

Benefits

 

 

Abandonment

 

 

Operations

 

 

Other

 

 

Total

 

January 1, 2016 balance

 

$

1,637

 

 

$

1,357

 

 

$

—

 

 

$

—

 

 

$

2,994

 

Charged to expense during period

 

 

6,016

 

 

 

246

 

 

 

(6,611

)

 

 

(67

)

 

 

(416

)

Cash payments

 

 

(2,469

)

 

 

(239

)

 

 

—

 

 

 

—

 

 

 

(2,708

)

Adjustment for the gain on the disposition of business operations

 

—

 

 

—

 

 

 

6,611

 

 

—

 

 

 

6,611

 

Adjustment for asset impairment

 

 

—

 

 

 

(194

)

 

 

—

 

 

 

—

 

 

 

(194

)

Other

 

194

 

 

81

 

 

—

 

 

67

 

 

 

342

 

June 30, 2016 balance

 

$

5,378

 

 

$

1,251

 

 

$

—

 

 

$

—

 

 

$

6,629